Ver Angola

Trade

Beverage production with “immense opportunity” for export

The Minister of State for Economic Coordination said this Monday that only 30 percent of the installed capacity in the beverage sector is explored, highlighting the “immense opportunity” for export.

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José de Lima Massano said that the country for many years was structured to import, which should continue to happen "where necessary", but there is a need to make "a greater effort" to create "a more facilitating environment for those who want export".

"This is work that is ongoing, we have a 'deadline', which is, by the end of this year, we will have solutions that facilitate exports, therefore, we have immense potential here", said José de Lima Massano, speaking this Monday to the press, at the end of a meeting with the Angolan Beverage Industries Association (AIBA).

According to José de Lima Massano, the internal need is "practically addressed", but there is an opportunity, "because the structure is already there, it is available", to be exported.

"It was also one of the topics discussed here today. More than difficulties in the functioning of one or another unit, at this level it was, with this capacity, how we managed to generate more value", he highlighted.

The official highlighted that one of the concerns also presented by the association has to do with the recovery of the Special Consumption Tax (IEC), adding that the process is ongoing and that the completion deadline runs until the end of the year.

José de Lima Massano also clarified that, in relation to the IEC, there is no proposal for a reduction, and that, from a fiscal point of view, there is no major concern with this tax, with the Government continuing to monitor it.

"The big concern is how do we remove obstacles at this level to exports, that is, we also have tax burdens applied to exports, which remove the competitiveness of our products. Yes, we naturally see this as a major concern and in this exercise To make the export path easier, we will also touch on the topic, trying to make it easier", he highlighted.

With regard to Value Added Tax (VAT) on the import of machinery, José de Lima Massano said that the proposal to reduce this tax on food goods is currently in parliament, "which will also allow for equipment the payment period is extended" to a period of 12 months.

In turn, the president of AIBA, Manuel Sumbula, said that, in the last four months, the sector has experienced constraints due to economic market conditions, which have led to a reduction of around 30 percent in production, in a context in which the Purchasing power also reduced substantially, having therefore presented several concerns to the executive.

Manuel Sumbula mentioned that there are difficulties in importing raw materials, there is a contraction in the market, a reduction in production, highlighting that, at the meeting, the Government heard the concerns of various stakeholders in the sector, namely investors and producers.

"We talk about the issue of exports, which is a denominator that we need to leverage more and more, even to look for new markets, looking at the installed capacity that the country represents today", said the president of AIBA, an association that represents the production of table waters, juices and nectars, soft drinks, beers, ciders, spirits and wines, as well as packaging.

According to Manuel Sumbula, the Angolan beverage industry "is quite robust and has excess capacity".

"We presented to the executive this major issue of making costs more flexible, so that we have more fluid exports. Then the economic diplomacy that must be implemented in some countries" to present the capabilities of Angolan production, said Manuel Sumbula.

The sector represented 14,000 direct jobs, a number that fell to around 10,000 in the last five years, due to various moments, namely the financial crisis at the end of 2014, the covid-19 pandemic and recently, in the months of May, June and July of this year, he said.

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